# Model complex venture capital fund distributions. AI Agent Connect > Accelerator Carry Distribution calculates venture capital waterfall distributions, GP catch-ups, and clawback scenarios. This MCP implements the standard four-tier waterfall model, determining exactly how exit proceeds split between Limited Partners (LP) and the General Partner (GP). Use this connector to model fund performance, evaluate GP liabilities, and test various hurdle rates. It's built for fund managers and analysts who need accurate, reliable distribution math. ## Overview - **Category:** finance - **Price:** Free - **Endpoint:** https://edge.vinkius.com/vk_preview_OiXUn5fWjNy9mfhXFSExDcE4cgLBkT38YtFDazPG/ai-agent-connect - **Tags:** venture-capital, waterfall, finance, carried-interest, irr ## Description VC fund math is notoriously complicated. The distribution of exit proceeds depends on a precise sequence of payments, governed by the fund's waterfall structure, hurdle rates, and carried interest agreements. Trying to model this in a standard spreadsheet is slow and prone to error. This MCP handles the entire process. It uses the standard four-tier waterfall model to determine exactly how much money goes to the LPs versus the GP. You can run full simulations to understand how different performance levels impact the final split. It's the tool you use when you need to know the precise dollar amount for every party involved in the exit. ## Tools ### analyze_irr_sensitivity This tool compares how different hurdle rates affect the GP's ability to enter the catch-up phase. ### calculate_waterfall_distribution This tool determines the exact dollar amounts distributed to LPs and the GP based on the fund's performance and agreement terms. ### simulate_clawback_scenario This tool evaluates the potential impact on the GP if the fund's performance drops after a large exit, requiring the return of carried interest. ## Prompt Examples **Prompt:** ``` Calculate the waterfall for a fund with $50M gross proceeds, $40M LP capital, 20% carried interest, and an 8% hurdle rate. ``` **Response:** ``` The distribution results in $43,200,000 for LPs and $6,800,000 for the GP, with a total profit of $10,000,000. ``` **Prompt:** ``` What happens if the GP has already received $2M in carry but the final fund profit is only $8M with a 20% carry agreement? ``` **Response:** ``` The GP is required to return $400,000 to the LPs to satisfy the 20% carried interest agreement on the $8M profit. ``` **Prompt:** ``` Compare how hurdle rates of 5%, 8%, and 10% affect the GP carry for a fund with $100M proceeds and $80M LP capital. ``` **Response:** ``` At a 5% hurdle, the GP carry is $4,000,000; at 8%, it is $3,600,000; and at 10%, it is $3,200,000. ``` ## Capabilities ### Calculate fund waterfall The AI uses this to determine the precise dollar split between LPs and GPs based on fund performance. ### Model clawback risk The AI runs this to evaluate potential GP liabilities if the fund's performance declines after an exit. ### Test hurdle rates The AI compares outcomes to see how varying hurdle rates affect the GP's catch-up phase. ### Determine carried interest The AI calculates the exact dollar amounts for LPs and GPs based on the fund's agreement terms. ### Analyze IRR sensitivity The AI shows how changes in hurdle rates impact the GP's ability to receive carry. ## Use Cases ### Exit Proceeds Modeling Determine the final split of a fund after a major sale, ensuring the distribution follows the correct waterfall sequence. ### Stress Testing Fund Performance Run simulations to see what happens to the GP's take if the fund underperforms or hits a snag. ### Deal Structuring Comparison Compare how different hurdle rates change the GP's payout, allowing you to structure deals optimally. ### Due Diligence Review Quickly calculate distributions based on fund agreements during the due diligence phase. ## Benefits - It calculates the exact dollar amounts distributed to LPs and GPs, eliminating manual calculation errors. - You can simulate clawback scenarios to quantify the GP's potential liability if fund performance drops. - It compares outcomes across different hurdle rates, helping you understand the impact on GP carry. - The MCP handles the entire four-tier waterfall process in one calculation. ## How It Works Connect your preferred AI client to the Vinkius catalog. You simply tell your agent the fund's parameters, and it runs the complex math for you. 1. Connect your AI client (Claude, Cursor, Windsurf, or VS Code) to the Vinkius catalog. 2. Select the Accelerator Carry Distribution MCP connector. 3. Provide the necessary inputs, such as gross proceeds, LP capital, and hurdle rates. 4. The MCP executes the complex waterfall calculation and returns the precise distribution results. ## Frequently Asked Questions **What is a waterfall distribution?** It's the structured sequence that dictates how exit money is paid out. The waterfall determines who gets paid first—LPs, GP, or both—based on the fund's agreements. **Does this MCP handle clawbacks?** Yes. You can use the simulate_clawback_scenario tool to evaluate the potential impact on the GP if the fund's performance drops after a large exit. **What kind of data do I need to provide?** You need core fund data, including the gross proceeds, the LP capital, the carried interest percentage, and the hurdle rate. **Is this for private equity funds?** This MCP is specifically designed for the structure and math of venture capital funds and their waterfall distributions. **Can I compare different hurdle rates?** Absolutely. You can use the analyze_irr_sensitivity tool to compare how varying hurdle rates affect the GP's ability to enter the catch-up phase.